Service Tax on consultancy and training services

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  1. Dakshin

    Dakshin New Member

    I'm a consulting engineer and professional trainer. My training fee is inclusive of the expenses incurred for the training program (eg. training materials, training hall payment, lunch/snacks, etc.). I need a clarification how to calculate service tax?
    For example - The training fee is Rs. 40,000/- excluding service tax but includes expenses and my professional service fee.
    - How to calculate service tax - either for gross training fee or professional fee only and separate out the expenses?
    - If my income is not exceeded 10 lakh in present and previous year but collected service tax seperately, assuming that it shall exceed the limit, what to do the collected service tax amount?
  2. Karan Batra

    Karan Batra Well-Known Member

    1. As you would be raising invoice for the complete program fee and not the training fee - therefore service tax would be levied on the complete training fee.
    2. If your turnover is less than Rs. 10 Lakh but you've collected Service Tax, you would be required to deposit the same with the govt.
    You can also claim cenvat credit of the service tax paid by you on input services like Service Tax on Phone Bill, Service Tax on Internet Bill etc.
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